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Why Are Obamacare Premiums So Different Across States?

Obamacare is a federal program, but what many Americans don't know is that costs will remain different from state to state. In fact, a new report from the Department of Health and Human Services shows some huge differences in premium costs depending on where you live.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning and author of the special free report "Everything You Need to Know About Obamacare," talks with Motley Fool health-care bureau chief Max Macaluso about these cost differences and why they're so big. Dan notes that in comparing costs in different states, minimum coverage in the highest-price state, Wyoming, costs three times as much in Minnesota, the lowest-price state. He points out that some states have more than a hundred different options for residents to consider, while those in other states have fewer than 10. Moreover, demographic differences between states also contribute to disparities in average premiums, and those of different ages and in different cities should also expect to see variability in costs.

Max and Dan then discuss how the future could play out for Obamacare. If UnitedHealth Group (NYSE: UNH) , Cigna (NYSE: CI) , and Aetna (NYSE: AET) reverse their hesitation to participate in Obamacare health-insurance exchanges, then their presence could add competition to the mix and reduce premiums in some high-cost areas. On the other hand, if Health Management Associates (NYSE: HMA) , Universal Health Services (NYSE: UHS) , and other health-care providers raise their prices in some areas, it could send rates there rising even higher.

Get all the answersDo you still feel like you're in the dark about how Obamacare might affect you and your portfolio? The Motley Fool's special report, "Everything You Need to Know About Obamacare," takes a 360-degree look at how the law may affect your taxes, health insurance, and investments. Click here to grab your free copy today.

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This is why you need National Healthcare, because states like Wyoming don't have enough people to make the pool if customers big enough to hold premiums down, but then its a Red State so who cares what they pay. Maybe the Koch Brothers will take care of them

Very few things run by the Federal Government are run well. And it's not a political party thing either. The only real way ACA can work is for states to be given money on condition, have some $$$ incentive to make it work, and have the ability to opt in/out on many, many portions, and have a great deal of flexibility - not just Medicaid expansion.

If voters in each state want more/less of this "better" kind of ACA, they can vote for it.

The only reason Romneycare worked is that Mass. is relatively affluent. There was enough money to go around. Plus it was run locally at the state level. More accountability.

I noticed people on the far right will trot out the Kenya, union, socialist rants while people on the far left love the Koch brothers, 1%, and soak-the-rich rants. Sorry, most of us are near the middle.

This is one reason why this Healthcare plan is biased. If it is truly universal healthcare, pricing should be the same regardless of location. We have private insurance that we pay for 100% out of pocket, but is negotiated for as a group plan through my pension fund. They told us in August to expect huge increases in premiums starting Jan., 1st due to Obamacare. They have been trying to prepare us through webinars and meetings. Once again, the people who work hard and pay their way in society have to pay for those who refuse to do the same, or think their must have electronic devices are more important than their healthcare. But they have no problems crying for free or drastically reduced healthcare if they don't have to pay what we do.

I remember when Clinton was in office and Hillary was figuring a way for the US citizens to get universal healthcare or something similar. People in DC were furious and others in the country were furious too. Now I would like to know why we HAVE to have Obamacare and why is it shoved down our throats?

my prescripton insurance through united health care came in and it has doubled since last year. i suppose it is tied to obama care and i am going to have to pay some welfare receipients medicine insurance since they chose to never work and ride the backs of citizens that worked for a living and tried not to be a slave to the govt.

The US should just hire the French government to run our medical system and it would be 50% cheaper than the crappy one that we now have. Also you would get better medical care and live longer. But it will never happen here because the US is Number One in cost and we have the best paid medical insurance CEOs in the world.

Sending report...

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.
Follow @DanCaplinger